Fairer taxation strengthens social justice

In recent months and years, media leaks have revealed the shocking extent of systematic tax fraud and aggressive tax avoidance. Tax havens and loopholes in the legislation of many countries are at the origin of this scandal which has the potential to undermine democracy. In particular, multinational companies and very rich individuals have profited from this situation. In a period of growing income inequalities taxation must become fairer. That everybody and every company pays its fair share of taxes must be a key policy goal. In this respect, the OECD “Base Erosion and Profit Shifting Project” (BEPS) and its transposition into national law are pivotal. In line with the BEPS project, the European Commission has taken the lead within the European Union (EU) and currently pursues an ambitious agenda. Although taxation matters require unanimity among member states some progress has been made and recent decisions in the Council of the EU have been encouraging.